Break in motor insurance: Top 4 myths busted

However, when it comes to buying one for your car, you will have to undergo a tedious process and may lose some benefits if the break in the policy is more than 90 days.

However, when it comes to buying one for your car, you will have to undergo a tedious process and may lose some benefits if the break in the policy is more than 90 days. (Source: Reuters)

Neeraj Gupta

When it comes to buying a break-in insurance policy, there are a lot of misconceptions. Let’s find out the real story behind a few myths about break in insurance policy.

Can’t renew policy if it breaksThe biggest myth around an expired policy is that you cannot renew it; you have to purchase a new policy. But the truth is you can renew your policy even after a long break with the help of break-in insurance. Buying a break-in policy for a two-wheeler is not a difficult task. However, when it comes to buying one for your car, you will have to undergo a tedious process and may lose some benefits if the break in the policy is more than 90 days.

Compulsory deductibles applyA deductible is a fixed share of repair cost that you pay out of your pocket. Compulsory deductibles are of two types: Rs 1,000 for a car with up to 1500 cc engine capacity and Rs 2,000 for those above 1500 cc. People assume that if they buy a break-in policy they will have to take on all the deductibles. This is not true. One needs to only carry forward compulsory deductibles and can choose non-compulsorily deductibles to reduce the premium.

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Inspection is compulsoryThis purely depends on your vehicle type. For insurance of a two-wheeler , inspection is not required even if the break is for six months. All you need to have is your vehicle documents. However, in the case of a car, inspection is compulsory and you cannot skip it. You will only be given motor insurance after the inspection of your car. If your car has too many dents or scratches your insurer can even deny insurance altogether.

NCB benefits cannot be availedNo claim bonus (NCB) is a discount you get upon renewal if there was no claim in the previous year. You get to keep your NCB benefits even after a break in your policy provided the break is not for more than 90 days. If you miss the deadline even by a day or an hour, your insurance will break. Make sure to renew before the expiry date to avoid unnecessary hassles.